Income, Profits and Dividends
Millions of Dollars
from installments realized during the year of the profits on the
sale of the Dayton Biltmore Hotel, Hilton Hotel, Lubbock,
Texas, The Plaza and The Town House. The net profit from
sales of properties realized in 1952 was $270,245, or 17 cents per
By way of explanation, the Dayton Biltmore Hotel and the
Hilton Hotel in Lubbock were sold in 1952, The Plaza and
The Town House were sold in 1953, and the profits on these
sales are being reflected on our books as the sales price of each
is being received over a period of years. These profits are subject
to tax at the capital gains rate.
The provision for federal income and excess profits taxes for
1953 amounted to $5,269,440, or $3.27 per common share,
compared with $5,044,614, or $3.11 per share, in 1952.
The Corporation continued to pay regular quarterly dividends
of thirty cents per share on the common stock throughout 1953.
Such payments, on the first of March, June, September and
December totaled $1.20 per share. Regular quarterly payments
of fifty cents per share, or $2.00 in all, were also made on the
convertible preference stock.
Total dividend payments on preferred and common stocks
during the year amounted to $1,940,128, which was equivalent
to 30.2 per cent of the net profit. The balance of net profit,
$4,473,872, was retained to finance further growth of the business.
The Beverly Hilton
In August, 1953, the Corporation commenced construction of
the Beverly Hilton, a $12,000,000 ultra-modern luxury hotel
being built on an eight and one-half acre tract previously
acquired in Beverly Hills, California. Scheduled for completion
at the end of 1954 or early in 1955, the hotel will contain 450
rooms, the majority with a private balcony. There will also be
several penthouse suites. The hotel will be completely air conditioned and will feature a large cantilevered dining room and
terrace overlooking a beautiful swimming pool.
The building will include 94,000 square feet of floor space for
one-store shops, and parking space will be provided for 942
automobiles. Rentals from specialty shops and stores are expected to constitute an important portion of the Beverly Hilton's
revenues. Income from these sources, plus revenue from permanent guests, should cover all real estate taxes and provide an
adequate return on the Corporation's investment.